Currently, UK monetary policy is based on an inflation target and central bank independence. Critically evaluate the extent to which the theoretical and empirical work of macroeconomists has influenced the current monetary policy framework. Developments in macroeconomic policy are generally the result of critical analysis over time, and each of the macroeconomists examined in this essay has provided this to their predecessors. . In our current framework it is clear that the policies applied are all influenced, in part, by these economists. To understand the need for an inflation target it is important to understand what the real costs of inflation are and why inflation needs to be controlled. The consensus is that inflation, especially if unexpected, has real economic costs (Snowdon and Vane, 2005). In terms of expected inflation it is believed that there are still welfare costs. These are shoe leather costs and menu costs (Snowdon and Vane, 2002). Shoe leather costs are prevalent due to the increase in time deposits, in an inflationary environment, so that the interest earned will partially offset the nominal costs of inflation. Menu costs arise from the cost of labor, paper and ink for the revaluation of goods due to inflation. Inflation costs have a greater impact when inflation is unexpected, which can lead to reductions in the real wage rate. The roots of the UK's current monetary policy framework, based on inflation targeting and central bank independence, can be traced back to Friedman's 1968. article, The role of monetary policy. In this article, Milton Friedman reintroduced monetary policy as a viable method of managing the economy. He stated that the price level is the most important parameter in an economy, but admitted that it is also the most difficult to control due to the effect of time lags. In this article he also acknowledged the impact of time on economic research, stating: “Perhaps, as our understanding of economic phenomena advances, this situation will change.” He stated this in reference to his comment on attempts to directly control the price level and the likelihood of them becoming a monetary disturbance (Friedman, 1969). Friedman's preferred method of monetary management was to explicitly aim for growth in the quantity of money at a stable rate. According to him, the optimum would be between 3 and 5%. By targeting the growth rate in this way, he believed it would be possible to control the level of prices indirectly, ensuring that they rose or fell at a low, steady rate.